Business Operations refers to all corporate activities that are directly related to the purpose of the business. Operation means “immediately effective”, “concerning certain measures”. At the same time, the Business Operations is usually also the core business of a company, as it results from the objective of the operational purpose. Ancillary transactions that are not part of the operating purpose are not part of the operating business. This strict separation is also reflected in a company’s accounting, where business transactions are counted in the income statement as part of the operating result or extraordinary profit. The operating result (also known as the operating result) includes all transactions resulting from ordinary – operational – business activities.
For example, companies in the automotive sector report revenues from the sale of motor vehicles produced under operating business; however, if exchange rate gains are also generated from foreign exchange transactions, these are part of the extraordinary result.
Contents of Business Operations
Operations include all operational functions such as procurement, production, financing, administration and sales, as long as they are used for the operational purpose. Their activities result in company data, from which operational data is needed to prepare decisions. In the operational business, operational decisions are made that can be repeated (several times) a day.
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Sometimes, the Business Operations is also understood as the opposite of the strategic business. The latter are business transactions with a long-term impact on the company. These include, for example, the acquisition or sale of shareholdings in the context of the acquisition of a company, the acquisition/sale of buildings/machinery with a share of at least 20% of the balance sheet total of the acquirer/seller or the establishment/termination of strategic partnerships. Such strategic operations require different decisions than operational ones, namely management decisions based on dispositive data.
The term is often used in connection with comparisons or comparisons of corporate management and corporate strategies.
